The Financial Clean Break Order in divorce settlements

Once a marriage has irretrievably broken down and both parties have consented to divorce, often the most contentious issue will be in achieving a financial settlement that both parties can agree upon.

Most financial settlements will consider one or more of the following:

interim maintenance for one of the spouses;maintenance for children of the union;

division of capital (savings etc.);

adjustment to ownership of the marital home or other property, or division of proceeds from the sale of the home, and;

sharing of pension schemes

If you need advice on financial clean break settlements following the break down of your marriage call us on 0800 652 5577 for a free initial consultation.

The Financial Clean Break Order

A Financial Clean Break Order ("Clean Break") is intended as a court ordered financial settlement to end all monetary claims between the spouses. Once a Clean Break is made the court will not hear any further claims that the spouses have for the duration of the parties' lives and even after death of one or other of the ex-spouses.

This type of financial settlement will only put in order the finances of the spouses. Future financial provision for the children of the union cannot be finalised in this way.

Childless couples and those with children over the age of 18

A Clean Break may be suitable if there are no children to be provided for under the age of 18-years.

Even if a couple has mutually agreed upon the financial arrangements and sharing of assets upon separation, a Clean Break would protect against any future claims. For secure financial autonomy after separation a Clean Break could be considered in the final stages of divorce.

When a Clean Break may not be suitable

In certain cases it may not be feasible to end both parties' financial ties - particularly if the value of assets is limited. In such cases, division of assets may not yield enough to leave both parties with finances sufficient to each set up new homes.

Further, if one spouse's earning capacity is non-existent or much lower than the other - a Clean Break will require substantial assets to be transferred to that party or a lump sum payment that will meet their needs.

Courts will deal with divorce financial settlements on a case by case basis with the ultimate goal of eliminating monetary ties between the households whilst ensuring that the interests of the children are given paramount consideration. Couples who attempt a level-headed approach to the finances will ultimately find the monetary split less devastating and perhaps even rewarding when an autonomous position is reached.

JMW solicitors providing advice on separation and divorce law

We can assist you in compiling all relevant financial details and records prior to presenting a Financial Clean Break Order for ratification by the courts. We believe in bringing a positive and cost-effective contribution to your divorce settlement by offering outstanding advice on separation and divorce law.